GRAND RAPIDS — An affiliate of Grand Rapids-based RDV Corp. is exploring adding a boutique hotel to a 13-story downtown apartment building.
55 Ionia Partners LLC wants to put a 32-unit high-end hotel catering to extended-stay guests at The Morton, a 111-unit, market-rate apartment building located at 55 Ionia Ave. NW at the intersection with Monroe Center Street. The building also includes 38,000 square feet of ground-floor retail and a second-floor office.
Completion of the project is targeted for 2020, Nick Wasmiller, spokesperson for the DeVos family office RDV Corp., told MiBiz in an email.
“We believe there is strong demand for this niche offering in the Grand Rapids market,” Wasmiller said.
The hotel was included in an amendment approved by the Michigan Strategic Fund Board on Wednesday. 55 Ionia Partners had requested the state amend the terms of a $4.3 million loan participation agreement with the company.
According to Michigan Strategic Fund documents, the hotel component will “improve marketability of the unleased commercial space and improve overall project cash flow.”
The company also sought $3.5 million in additional debt financing to complete the hotel.
55 Ionia Partners plans to convert a portion of the residential units and unsold condominium units for the hotel. The partners anticipate the hotel will generate between $300,000 and $600,000 in additional cash flow.
About 93 percent of the residential units in the building were occupied as of August, and 40 percent of the commercial space is occupied, according to MSF documents.
Previously, 55 Ionia Partners secured a loan deferment from the state as developers struggled to fill retail space at the building, as MiBiz previously reported.
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